Significant Changes in Income Tax w.e.f 01.04.2021:

1. Pre-filled ITR Forms:

A major change in ITR Form is expected as per Budget 2021 (Pre-Filed ITR) will be introduced.

The Pre-filled ITR Forms will have information of Capital Gains from Listed Securities, Dividend   Income, Interest from Banks/Post Office, etc.

Earlier Pre-filed   ITR form   was   available    for   Salaried employees where Income was reflected on basis of Form 16, but now the scope has become wide.

 

2. Tax on Interest on PF:

Interest earned from the Provident fund is exempt from Income Tax.

But, in Budget 2021 has proposed that Interest on Employee Contributions to Provident fund over fts. 2.5 lakhs should Taxable.

 

3. Penalty for Non-Linking of Aadhar & PAN:

The Due Date for linking Aadhar and Income Tax PAN is 31st March 2021.

In case of non-linking, your PAN Card would become in-operative.

In case of Non-Linking, you may be Charged a Fine of fts. 10,000 as per Section 272B of the Income Tax Act.

 

4. High TDS/TCS Rate for Income Tax Return (ITR) Non-Filers:

A new sec 206AB has been inserted in Income Tax Act as a special provision providing for higher rate for TDS for the non-filers of income tax return (ITR).

The Proposed rate on Non-Filer is higher of the following:

• 5%
• twice the rate specified in the relevant provision of the Act.
• twice the rate or rates in force

Similarly, a new sec 206CCA has been inserted in Income Tax Act as a special provision providing for higher rate for TDS for the non-filers of income tax return (ITR).

The Proposed rate on Non-Filer is higher of the following:

• 5%
•  twice the rate specified in the relevant provision of the Act.

 

5. Submission of bills under LTC Cash Voucher Scheme:

To avail the tax benefit under the LTC Cash Voucher Scheme, ensure that required bills in the correct format containing GST amount and GST number of the vendor have been submitted to your employer (provided the employer is offering the scheme) on or before March 31, 2021. As per the scheme, an employee is required to spend three times the amount deemed as LTA fare on goods and services attracting GST of 12% or more.

 

6. No Tax Filing for Senior Citizens Above 75:

Persons whose age is above 75 years and who has pension income and interest from fixed deposit comes in the same bank and who has only interest income, they need not file income tax return.

Bank will deduct the income tax which he has to pay and deposit to the government. The condition is the person should have only pension income and interest from fixed deposit should accrue in the same bank.

7. Time limit for filing delayed ITR reduced:

The last date to file a revised income-tax return or belated return on a voluntary basis will now be December 31 after the close of the financial year instead of March 31, 2022.

8. Tax holiday on affordable housing extended:

The government has extended the additional tax deduction of ₹1.5 lakh on interest paid on housing loan for the purchase of affordable homes by one more year to March 31, 2022. The additional deduction of Rs1.5 lakh over and above ₹2 lakh was introduced in the 2019 budget. This was allowed for those buying homes for the first time and of up to ₹45 lakh cost.